This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Continental Resources Goes High-Tech in Bakken Oil Field

Minot, N.D. ( TheStreet) -- Oil and gas exploration company Continental Resources (CLR - Get Report) has the biggest footprint and is the leading oil producer in the booming Bakken Shale basin of North Dakota, an advantage in a market of seesawing prices.

What's more, its technological expertise in so-called unconventional drilling processes that it has honed here should prove invaluable elsewhere. There are several other known, but still untapped, areas with similar geology as the Bakken throughout North America, Mexico and in Russia's Siberia where Continental's expertise could open vast new resources.

And that would make the firm, whose value is $32 billion, attractive not only for its future exploration and production work, but also as an acquisition target for a much bigger firm.

Continental's shares are on a strong run, gaining almost 10% in the past three months, which is about what they're up for the year, versus the S&P 500's 14% increase.

Its shares have a three-year average annual return of 26% and a five-year annualized return of 37%, which means that $10,000 invested five years ago would be worth about $47,716 today.

Continental's current price-to-earnings (P/E) ratio is 16, in line with the S&P 500's, while its forward P/E is 15.2.

Continental is the largest leaseholder in the Bakken, which stretches 8 million acres over North Dakota and Montana, as the owner of drilling rights to almost 1 million acres. It is also the most active operator here with 76 exploratory rigs at work as of the end of June, out of the total of about 209 of all companies in the field.

There are a total of about 7,000 active wells in the Bakken region, that is, wells owned by all companies that have been drilled and are in production. Many are producing oil so freely that they don't need pumpjacks, which are in use in most traditional oil fields, helping keep operating costs low.

The state says the pace is for about 2,250 new wells drilled by all the exploration firms here in western North Dakota's Bakken region.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CLR $42.76 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs